GSI Technology, Inc. (NASDAQ:GSIT) is one of the stocks Jim Cramer recently put under a microscope. Cramer was bearish on the company stock during the episode. He said: “In the end, I simply can’t bring myself to endorse GSI Technology for you. As far as I can tell, the only truly positive news out of this company in the past couple of years has been this one random paper from Cornell testing a previous generation APU from GSI against several generations-old GPUs from NVIDIA… Stock market reports print ...

Financial Position - The company reported cash and cash equivalents of $25.3 million as of September 30, 2025, with no debt[99]. - Cash and cash equivalents increased to $25.3 million as of September 30, 2025, up from $13.4 million as of March 31, 2025[129]. - The company believes existing cash and cash equivalents will be sufficient for working capital and capital expenditures for at least the next 12 months[135]. - Cash and cash equivalents totaled $25.3 million at September 30, 2025, primarily invested in money market funds[144]. - As of September 30, 2025, the company had $13.2 million in purchase obligations, with $1.9 million payable in the next twelve months[137]. Revenue and Sales Performance - Direct and indirect sales to networking and telecommunications OEMs accounted for 19% to 34% of net revenues over the last three fiscal years[103]. - The largest end user customers in fiscal 2025 were KYEC, Nokia, and Cadence Design Systems, with significant fluctuations in sales expected[109]. - Net revenues increased by 41.6% from $4.6 million in Q3 2024 to $6.4 million in Q3 2025, and by 38.0% from $9.2 million in the first half of 2024 to $12.7 million in the first half of 2025[117]. - Direct and indirect sales to KYEC increased by $152,000 in Q3 2025 compared to Q3 2024, while sales to Nokia decreased significantly[117]. - The overall average selling price of units shipped increased by 19.2% in Q3 2025 compared to Q3 2024, while the number of units shipped increased by 19.0%[117]. Profitability and Expenses - Gross profit rose by 101.1% from $1.8 million in Q3 2024 to $3.5 million in Q3 2025, with gross margin increasing from 38.6% to 54.8%[121]. - Research and development expenses decreased by 21.3% from $4.8 million in Q3 2024 to $3.8 million in Q3 2025, and by 23.7% from $9.0 million in the first half of 2024 to $6.9 million in the first half of 2025[122]. - Selling, general and administrative expenses increased by 15.6% from $2.6 million in Q3 2024 to $3.0 million in Q3 2025, and by 10.2% from $5.2 million in the first half of 2024 to $5.7 million in the first half of 2025[123][124]. - The net loss was $5.5 million in Q3 2024 compared to $3.2 million in Q3 2025, and $4.4 million in the first half of 2024 compared to $5.4 million in the first half of 2025[128]. - Cost of revenues increased by 4.2% from $2.8 million in Q3 2024 to $2.9 million in Q3 2025[120]. Cash Flow and Financing Activities - Net cash used in operating activities was $2.6 million for the six months ended September 30, 2025, a decrease from $7.7 million for the same period in 2024[130]. - The primary sources of cash in the six months ended September 30, 2025 included reductions in accounts receivable and prepaid expenses, while the primary uses were a net loss of $5.4 million and a decrease of $1.9 million in accrued expenses[130]. - Net cash provided by investing activities was $40,000 in the six months ended September 30, 2025, significantly lower than $11.3 million in the same period of 2024[132]. - Net cash provided by financing activities in the six months ended September 30, 2025 included proceeds of $14.3 million from an At-the-Market offering and $263,000 from employee stock plans[133]. - The company entered into a registered direct offering on October 21, 2025, issuing 1,508,462 shares at $10.00 per share, with gross proceeds of approximately $50 million[100][101]. Market and Economic Conditions - The company anticipates continued inflationary pressures and geopolitical tensions to negatively impact demand and financial performance through fiscal 2026[102]. - The company expects fluctuations in quarterly net revenues due to the cancelable nature of orders and the timing of product releases[105]. - The average selling price of the company's products has increased or remained unchanged in recent years, but historical trends show a decline over the product life cycle[104]. - The company has minimal exposure to foreign currency exchange risks as revenues and expenses are primarily denominated in U.S. dollars[143]. - A hypothetical 100 basis point change in interest rates is not expected to materially affect the fair value of the company's interest-sensitive financial instruments[144]. Contracts and Milestones - The company received milestone payments totaling approximately $1.25 million for the development of the APU2, with $435,000, $318,000, and $316,000 received in fiscal 2024, 2025, and 2026, respectively[96]. - The company has been awarded a contract worth $1.1 million by AFWERX to demonstrate high-data computation use cases leveraging the APU2 architecture[97].

Core Insights - GSI Technology, Inc. has introduced the Gemini-II APU, which offers ultra-low power consumption and industry-leading performance for real-time drone workloads, targeting a market projected to reach $2.7 billion by 2030 [1][3]. Company Strategy - GSI Technology is focusing on high-growth AI edge processor markets, particularly in drones, where its architecture provides significant advantages in performance and power efficiency [1][3]. - The company has raised $50 million in equity to advance its roadmap for capturing opportunities in edge markets, emphasizing improvements in power efficiency, latency, and on-device intelligence [3]. Market Potential - The global edge AI processor market is expected to grow to $9.6 billion by 2030, driven by the transition of AI from data centers to purpose-built workloads at the edge [3]. - GSI Technology aims to leverage its established relationships with defense agencies and contractors to prioritize early edge AI deployment in drone and military vehicle markets [3]. Product Performance - The Gemini-II APU delivers GPU-class performance at only 15W, significantly lower than competitors, making it suitable for power- and size-constrained environments [2][3]. - A Cornell University study confirmed that GSI's APU architecture achieves GPU-class performance with over 98% lower energy consumption and can reduce total processing time by up to 80% compared to conventional CPUs [4].

Core Insights - GSI Technology has introduced the Gemini-II APU, which offers ultra-low power consumption and industry-leading performance for real-time drone workloads, targeting a market projected to reach $2.7 billion by 2030 [1][3]. Company Strategy - GSI Technology is focusing on high-growth AI edge processor markets, particularly in drones, where its architecture provides significant performance and power efficiency advantages [1][3]. - The company has raised $50 million in equity to advance its roadmap in edge markets, emphasizing the need for power-efficient solutions in compact environments [3]. Product Performance - The Gemini-II APU operates at 15W, significantly lower than competitors, which typically consume around 2kW per GPU in data centers [2]. - The APU architecture achieves GPU-class performance with over 98% lower energy consumption compared to traditional designs, and it can reduce total processing time by up to 80% [4]. Market Potential - The global edge AI processor market is expected to grow to $9.6 billion by 2030, driven by the transition of AI from data centers to purpose-built edge applications [3]. - GSI Technology is leveraging established relationships with defense agencies to prioritize early deployment of edge AI in drone and military vehicle markets [3]. Future Developments - The next-generation APU, Plato, is expected to further enhance GSI's position in embedded edge AI applications, building on the foundation established by Gemini-II [4].

Core Insights - GSI Technology, Inc. (GSIT) shares have seen a 24.5% decline since the earnings report for the quarter ended September 30, 2025, contrasting with a 0.5% decline in the S&P 500 index during the same period [1] - The stock has experienced high volatility, gaining 81.7% over the past month compared to a 2% growth in the S&P 500 [1] Financial Performance - The company reported a loss per share of 11 cents for Q2 FY26, an improvement from a loss of 21 cents per share in the same quarter of the previous year [2] - Revenues reached $6.4 million, a 41.6% increase from $4.6 million in Q2 FY25, driven by higher demand for SRAM products [2] - The net loss narrowed to $3.2 million from $5.5 million in the prior-year quarter, with gross margin improving to 54.8% from 38.6% due to changes in product mix [3] Customer and Product Trends - Key customer concentration shifted, with Cadence Design Systems accounting for 21.6% of total revenues, up from zero in the prior-year period, while Nokia's contribution fell to 3.1% from 17.8% [4] - Military and defense-related shipments constituted 28.9% of total shipments, down from 40.2% a year ago, while SigmaQuad SRAM sales increased to 50.1% of shipments from 38.6% [5] Operating Expenses and Efficiency - Operating expenses totaled $6.7 million, down from $7.3 million in Q2 FY25, primarily due to reduced research and development spending [5] - Management indicated that efficiency improvements and potential design wins could help narrow losses in the future [9] Strategic Developments - CEO Lee-Lean Shu highlighted a significant technological milestone with the validation of GSI's Gemini-I chip, which matched the performance of NVIDIA's A6000 GPU while consuming over 98% less energy [6] - The company plans to use recently raised capital to fund ongoing Gemini-II software development and initiate the Plato chip design, targeting edge AI markets and defense applications [7] Future Guidance - Management expects third-quarter revenues to be flat to modestly higher, with gross margin remaining steady at 54% to 56% [10][11] - The company has scheduled the tape-out of the Plato chip for early 2027 and is engaging with multiple defense and aerospace prospects [11][12] Liquidity and Capital Position - GSI Technology closed a $50 million registered direct offering, nearly doubling its cash position to $25.3 million from $13.4 million at the end of March 2025 [13]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

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GSI (NasdaqGS:GSIT) Q2 2026 Earnings Call October 30, 2025 04:30 PM ET Speaker7Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's second quarter fiscal 2026 results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. At that time, we will provide instructions for those interested in entering the queue for Q&A. Before we begin today's call, the company has requested that I read the following safe harbor sta ...

Financial Data and Key Metrics Changes - The company reported net revenues of $6.4 million for the second quarter of fiscal 2026, compared to $4.6 million for the same period in fiscal 2025, and $6.3 million in the previous quarter [18] - Gross margin was 54.8% in the second quarter of fiscal 2026, up from 38.6% in the year-ago quarter but down from 58.1% in the preceding quarter [18] - The operating loss for the second quarter of fiscal 2026 was $3.2 million, an improvement from a loss of $5.6 million in the prior year period and a loss of $2.2 million in the previous quarter [19] - The net loss for the second quarter of fiscal 2026 was $3.2 million or $0.11 per diluted share, compared to a net loss of $2.2 million or $0.08 per diluted share for the same period in fiscal 2025 [20] Business Line Data and Key Metrics Changes - Sales to KYEC were $802,000 or 12.5% of revenues, compared to $650,000 or 14.3% in the same period a year ago [16] - Sales to Nokia were $200,000 or 3.1% of revenues, down from $812,000 or 17.8% in the same period a year ago [16] - Military defense sales accounted for 28.9% of second quarter shipments, down from 40.2% in the comparable period a year ago [16] - SigmaQuad sales represented 50.1% of second quarter shipments, up from 38.6% in the second quarter of fiscal 2025 [16] Market Data and Key Metrics Changes - The company is focusing on the military defense sector and edge applications, with significant interest in low power solutions for drones and military vehicles [10][12] - The Gemini II project has been approved for prototyping by an offshore defense contractor, indicating strong market validation [10] Company Strategy and Development Direction - The company aims to convert proof of concept projects into commercial customers and extend those relationships into large production programs [7] - The focus is on hardware and software development for Gemini II and the acquisition of necessary IP for the PLATO chip [6][12] - The company is prioritizing edge applications over data center solutions due to resource limitations and positive market feedback [73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of Gemini II, particularly in defense applications, and highlighted the importance of low power consumption [45] - The company is actively engaging with strategic partners for the PLATO chip, which is expected to tape out in early calendar 2027 [13] - Management noted that the recent Cornell University validation of their technology has generated increased interest from potential customers [86] Other Important Information - The company closed a $50 million equity financing to accelerate execution across hardware and software development [5] - The company had $25.3 million in cash and cash equivalents as of September 30, 2025, compared to $13.4 million at the end of the previous quarter [20] Q&A Session Summary Question: Has the company done any work with the auto industry on autonomous vehicles? - The company has not yet engaged with the auto industry but sees potential for future adaptation of their technology in that space [23] Question: Was the recent $50 million placement with a strategic investor? - The placement was not with a strategic investor and there is no required holding period for the shares [26] Question: Is there a plan to have Cornell validate the Gemini II technology? - Discussions are ongoing to get a Gemini II board to Cornell and other researchers for validation [30] Question: How is the company differentiating its APU versus GPU competitors? - The company emphasizes its low power consumption and competitive performance metrics compared to NVIDIA GPUs [45] Question: What is the total addressable market the company is looking at over the next five years? - The market is expected to be in the tens of billions, with the company well-positioned to address it due to its power profile and algorithm work [53] Question: How will the $50 million raise be allocated? - The allocation will include fixed costs for PLATO and will be distributed evenly between Gemini II and PLATO development [59]